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US President Donald Trump announced he’s directing his administration to investigate imports of furniture into the United States that will lead to higher tariffs by October. Source: CNN “Within the next 50 days, that Investigation will be completed, and furniture coming from other countries into the United States will be tariffed at a rate yet to be determined,” Trump wrote in a Truth Social post. “This will bring the furniture business back to North Carolina, South Carolina, Michigan, and States all across the Union,” he said. The investigation comes as the Trump administration is mulling higher tariff levels on imported goods such as copper, semiconductors and pharmaceuticals. Already, furniture prices have been increasing over the past few months as Trump hiked tariffs on countries including China and Vietnam, the top two sources of imported furniture. Both countries imported US$12 billion worth of furniture and fixtures last year, according to US Commerce Department data. Furniture and bedding prices, an overarching category the Consumer Price Index tracks, rose 0.4% in June and 0.9% in July after prices had been largely deflationary for the past two and a half years. Other furniture, including office, recreation and patio, saw the biggest spikes since May. Prices were up 1.5% in May, 1.6% in June and 1.5% in July. Like most goods, these categories were seeing prices fall by that much on a monthly basis, if not more, following the unravelling of pandemic nesting trends. Furniture stocks, such as Wayfair, William-Sonoma and Restoration Hardware, all tanked in after-hours trading Friday evening following a big day of gains across the stock market after Federal Reserve Chair Jerome Powell opened up the door to an interest rate cut.

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Finland’s Koskisen Corporation, whose main business is in sawn timber and panels, maintained its position as the strongest performer with remarkable growth, achieving a 24.3% year-on-year increase in revenue to €176.0 million (US$205.5 million). The company’s sawn timber segment was particularly strong, with revenue growing 47.2% to €96.2 million in the first half of 2024. Source: Fastmarkets Koskisen’s sawmill production reached record levels, and the strategic acquisition of Iisveden Metsä’s business in June expanded sawmill capacity by approximately 35%. “The positive development of the sawn timber industry segment continued,” said chief executive officer Jukka Pahta, though acknowledging that current raw materials prices are “not sustainable from the point of view of the profitability of the industry.” Sweden’s SCA demonstrated remarkable resilience with net sales increasing 7% to 10.5 billion Swedish krona (€932 million) and maintaining an impressive EBITDA margin of 34.9% at SEK 3.7 billion. The company’s high degree of self-sufficiency in wood raw materials, energy and logistics proved crucial in maintaining strong profitability against rising input costs. SCA’s wood segment delivered particularly robust performance with net sales increasing 24% to SEK 3.2 billion and EBITDA growing 35% to SEK 546 million, supported by higher selling prices and delivery volumes of 1,092,000 cubic meters (up by 19% year-on-year). The Finnish and Swedish company Stora Enso delivered solid performance with sales increasing approximately 5% and maintaining operational stability despite volatile market conditions. The company reached a major milestone with an agreement to divest approximately 175,000 hectares of forest land (equivalent to 12.4% of total forest holdings in Sweden) for an enterprise value of approximately €900 million. “While market conditions remained challenging, we focused on the areas within our control – enhancing sourcing, operational efficiency, commercial excellence, working capital, and fixed costs,” CEO Hans Sohlström said. The Swedish company Södra faced the most significant challenges among the six Nordic companies, posting an operating loss of SEK 389 million in the second quarter of 2025 compared to a profit of SEK 398 million in the same quarter last year. Net sales declined 4% to SEK 7.2 billion for the quarter, with results severely impacted by exchange rate effects of over SEK 580 million and scheduled maintenance shutdowns costing approximately SEK 240 million. “The second quarter was challenging for Södra. Increased global uncertainty, combined with rapid currency fluctuations and high raw materials prices, has created a triple external effect that puts pressure on our profitability,” President and CEO Lotta Lyrå said. In response, Södra initiated a comprehensive action program to strengthen competitiveness and profitability. Finland’s UPM reported 2025 first-half sales of €5.05 billion (down 3% year-on-year) with comparable EBIT decreasing 20% to €413 million, facing significant adversity from global trade tensions. “Tariff announcements caused uncertainty in global trade, which weakened demand and the US dollar. These had a negative impact, particularly on the pulp and communication paper businesses,” CEO Massimo Reynaudo said. The company’s advanced materials businesses showed greater resilience, though pulp operations were indirectly impacted by escalating trade tensions, particularly affecting Chinese demand. Another Finnish forest major, Metsä Group, struggled with a challenging first half, reporting sales of €3.07 billion (up by 4.5% year-on-year) but seeing comparable operating results decline to €44 million from €57 million. “Higher costs – especially higher wood raw materials prices – weakened the profitability of all business operations,” President and CEO Jussi Vanhanen said. The company has initiated a €300 million cost savings and profit improvement program to address these challenges. The sawn timber divisions across these Nordic companies demonstrated the sector’s resilience despite significant cost pressures, with most achieving volume growth even as margins came under strain. Koskisen led the sector with exceptional sawn timber performance, delivering 197,200 cubic meters (up by 41.4% year-on-year) in the first half of 2025. The company’s new sawmill in Järvelä, southern Finland, continued its ramp-up toward the target of 450,000 cubic meters annual capacity, while the June acquisition of Iisveden Metsä added approximately 140,000 cubic meters of annual spruce sawn timber production. Despite challenging market conditions, Koskisen maintained strong customer relationships and benefited from market-specific product concepts, achieving significant improvements in shift-specific production and operational indicators. Södra’s wood division experienced the most severe challenges, with operating profit collapsing to SEK 3 million from SEK 128 million in the second quarter of 2024. The division was heavily impacted by significantly higher saw log costs, though the company achieved some recovery through higher delivery prices and maintained positive developments in its CLT (cross-laminated timber) business. Despite the weak construction market, Södra’s CLT operations showed increased sales and production, reflecting the growing proportion of timber used in construction applications. SCA’s wood segment delivered robust volume growth with strong operational performance, benefiting from its strategically located sawmills close to forest holdings in Northern Sweden. Across the sector, several consistent patterns have emerged. High raw materials costs continue to pressure margins universally, with multiple companies stating that current wood prices are unsustainable for long-term industry profitability. Companies with integrated value chains demonstrated significantly greater resilience in this challenging environment. Global trade tensions and increasing tariffs have created substantial market uncertainty, while currency volatility – particularly the rapid strengthening of SEK against USD – has severely impacted export-oriented operations. Operational efficiency has become a critical focus area for all companies, with many implementing comprehensive cost reduction and competitiveness programs. Strategic investments made in previous years are beginning to show positive returns, such as UPM’s biochemicals refinery in Leuna, Germany, Stora Enso’s new packaging line in Oulu, Finland, and Koskisen’s new sawmill in Järvelä. However, scheduled maintenance shutdowns have had more significant negative impacts than in previous years, with Södra experiencing approximately SEK 240 million in costs from two major shutdowns. Market conditions vary significantly by segment and region, with construction sector weakness continuing to affect traditional sawn timber demand, while value-added products and export markets provided some offset. The CLT segment showed particular promise, with both Koskisen and Södra reporting positive developments despite overall market challenges. The industry outlook for the remainder of 2025 remains cautiously managed, […]

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PEFC has released a new informative clarification document to help non-EU based PEFC chain of custody certified organisations meet the requirements of the PEFC EUDR Due Diligence System (DDS) Standard (PEFC ST 2002-1:2024). Source: Timberbiz This standard was developed to support PEFC chain of custody certified companies in aligning with the EU Regulation on Deforestation-Free Products (EUDR), which came into force in June 2023 to prevent deforestation and forest degradation. Covering key commodities such as timber, natural rubber, coffee, soy, cocoa, palm oil, cattle, and their derivatives, the EUDR requires that products be deforestation-free and legally produced before entering the EU market. The PEFC EUDR DDS standard differentiates requirements for EU based and non-EU based companies. This informative resource clarifies the PEFC EUDR DDS requirements applicable to non-EU based companies. Some non-EU based businesses may assume the EUDR does not apply to them. In reality, if your products or materials are destined for the EU market – even via distributors or customers – you play a critical role in ensuring compliance. Without proper due diligence in place, your EU buyers may not be able to purchase from you, risking the loss of valuable market access. The PEFC EUDR DDS module standard is designed specifically to help both EU and non-EU based companies meet the regulation’s demands. By using it, non-EU based companies can: Demonstrate the alignment of their products to EUDR requirements for deforestation-free and legal production. Support EU customers in meeting their legal obligations. Safeguard and grow market opportunities in one of the world’s largest trading blocs. The clarification document helps non-EU based companies identify the PEFC EUDR DDS requirements that apply to them, including: Establishing a management system to meet PEFC EUDR DDS requirements. Identifying inputs and declaring outputs with the PEFC-EUDR claim. Collecting key EUDR data such as geolocation of harvest plots and evidence of deforestation free and legal compliance. Conducting risk assessments and applying mitigation measures where needed. Responding to substantiated concerns quickly and effectively. No placement on the market of products that do not meet EUDR or PEFC requirements. For most non-EU based companies, there is no need to submit due diligence statements to the EU’s TRACES system unless they are directly importing into the EU and responsible for customs declarations. The PEFC EUDR DDS integrates with the existing PEFC Chain of Custody standard, making it straightforward to implement. By adopting it, non-EU based companies show leadership in sustainability, commitment to deforestation free, and strengthen relationships with EU buyers, while helping them ensure their products continue to flow into the EU market without disruption. “EUDR compliance starts long before a product reaches Europe. This new publication gives non-EU based companies a clear view of the PEFC EUDR DDS standard requirements applicable to them, helping them keep their place in the EU supply chain through using PEFC scheme” said Marta Martinez Pardo, Standards and Integrity Senior Manager at PEFC International. Download: SIMPLIFYING COMPLIANCE: THE BENEFITS OF THE PEFC EUDR DDS Download: Responsibilities of non-EU based PEFC chain of custody certified organisations in implementing the PEFC EUDR DDS standard (Informative)  

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Agri Investor reported last week that UK company Gresham House is developing an international forestry strategy that could see a large investment in Australia and New Zealand. Source: Timberbiz According to Agri Investor around 40% would be allocated to Australasia as the company aims to expand its global footprint in the timber industry which includes afforestation and carbon projects. This comes off the back of Australia’s Nature Repair Market which is a voluntary national market that enables people to take action to restore and protect the environment. The scheme establishes a marketplace where individuals and organisations can undertake nature repair projects and attract investors. Projects under the Nature Repair Market encourage land management practices that improve biodiversity. These projects could include: planting trees on farmland re-establishing vegetation along waterways protecting and managing existing habitat or native vegetation. The Nature Repair Market allows investors to earn biodiversity credits for these projects.

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The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) is celebrating a milestone of 80 years of operations. Source: Timberbiz Recognised for its independent and authoritative analysis that has supported the growth and sustainability of Australia’s agricultural and resource sectors, the bureau first came into being on 21 August 1945. Originally known as the Bureau of Agricultural Economics, one of its first functions was to “investigate the economic prospects of primary industries with particular reference to efficiency factors”. The bureau has been through a series of mergers, most recently with the Bureau of Rural Sciences in 2010, bringing with it the capacity to undertake integrated economic, scientific and social science research. ABARES’s functions have ranged from shaping Australia’s post-war agriculture policies to addressing contemporary challenges like climate change, sustainability and biosecurity issues. ABARES Executive Director Dr Jared Greenville said the bureau had made a significant contribution to decisions on structural reform, trade, and natural resource management. “Since we began, ABARES’ aim has been to provide professionally independent economic analysis and advice on agricultural policies – a mission that has remained at our core,” Dr Greenville said. “A key activity of ABARES has been our farm surveys program, which expanded in 1971 to cover broadacre and dairy industries on an annual basis. “The support of Australian farmers who volunteer their time and provide their data each year has been critical to the success of the farm surveys.”

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A science-backed approach to bushfire mitigation is the goal of a joint effort between the University of Tasmania and the City of Hobart, as they study how land management techniques can be converted into measurable science that will inform safer, smarter outcomes for people, wildlife and the environment. Source: Timberbiz This collaboration between researchers at the University of Tasmania Fire Centre and the City of Hobart’s Fire and Biodiversity Team assesses the impact of on-ground bushfire mitigation techniques through a series of experiments on the bushland reserve near the University’s Sandy Bay campus. Together, the partners are building a new standard in evidence-based land management. Australian Research Council Laureate Fellow and Professor of Pyrogeography and Fire Science, David Bowman, said the project was the first step in work that he hoped would help to reduce the risk of another 1967 Black Tuesday disaster in Tasmania, or a Los Angeles 2025-style bushfire scenario. “Our city is surrounded by dangerous fuel loads, and, with a changing climate, we need to start adapting fast,” Professor Bowman said. “But we can’t do this without solid scientific data, close collaboration with City of Hobart and convincing evidence for the community that we can have it all – reduced fire risk, healthy biodiversity and amenity.” The initiative builds on nearly a decade of collaboration between the University and the City of Hobart, with this latest phase aiming to measure how fuel loads, native vegetation, and fauna respond to strategic fire management practices. The City of Hobart’s experienced fire practitioners have been directly involved in guiding and mentoring researchers over 11 burns so far within the past year to ensure the experiments accurately reflect real-world methods. The Hobart Lord Mayor, Cr Anna Reynolds, said this work was about transforming how cities like Hobart live with fire. “These works are designed so property owners on the bushland – urban interface can replicate them, giving residents practical, proven approaches to reducing bushfire risk on their own land,” Cr Reynolds said. “We’re combining rigorous science with practical land management to ensure we deliver both safer communities and healthy bushland – improving city safety and empowering our people, while protecting the biodiversity that makes Hobart unique.” CEO of Tasmanian insurance firm RACT, Mark Mugnaioni, was supportive of the research efforts. “RACT congratulates the Fire Centre on the world-leading practical research it is undertaking,” Mr Mugnaioni said. “Research like this provides crucial evidence on how different fuel reduction methods can reduce bushfire risk – knowledge that’s particularly vital for Tasmania given bushfire is our State’s largest risk. “The outcomes of this research will help communities to build resilience and ultimately support affordable insurance outcomes as we continue to experience changing weather patterns,” he said. Professor Bowman said this approach was not just a conversation starter about bushfire risks but was unique and innovative in Australia. “We’re not waiting for another disaster to strike; we’re proactively building a body of knowledge that helps us act smarter now and helps communities across the country to be better prepared for future bushfires,” Professor Bowman said.

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Tariffs on wood products exported from New Zealand to the United Sates remain at 0% as the section 232 Investigation aimed at determining the global effects imports of timber, lumber and their derivative products pose to the US supply chain continues. Source: Timberbiz Although the 0% tariff rate is a welcome relief for wood product exporters, the uncertainty of what may eventuate from the section 232 Investigation is causing nervousness across New Zealand wood processors and manufacturers who export over NZ$370 million of value-added wood product to the United States. Developments over the weekend included President Trump announcing on a Truth Social post that a major new tariff investigation on furniture (including wooden furniture) coming into the United States will be completed within 50 days at a tariff rate to be determined. This was followed by release of the draft EU and US Trade Agreement Framework which promptly ensures that the tariff rate applied to section 232 actions on lumber does not exceed 15%. “These announcements create further uncertainty, with a survey of our main U.S. exporters of wood products to the US highlighting that a tariff rate over 5% or over will have a significant hit on their profitability in the longer-term,” New Zealand Wood Processors and Manufacturers Association (WPMA) Chief Executive, Mark Ross, said. “The US s a growing market for our value-added wood products and with a drop off in NZ domestic demand, profitable export markets are critical to growing our industry. “Having our Trade Minister, Todd McClay, speaking up in support of the NZ wood processing industry on the section 232 Investigation in his recent Washington negotiations with US Trade Representatives, is highly valued by WPMA members and we thank the Minister and his negotiation team for backing our exporters. “The key is to present a united face across industry and government to the US decision makers as to the value of our wood products to the U.S. and that our products are not a threat to their domestic timber manufacturing or supply chain.” With the outcome of this section 232 investigation expected no later than early December, WPMA will continue to engage with our allied U.S. Associations, who are lobbying the US Administration to keep imported timber and lumber products tariff free as a means of levelling recent domestic US.  house price rises and maintaining robust supply chains. New Zealand is known in the US for providing high value and high-quality wood products, most of which is sold into the DIY end user’s market, such as Home Depot, Lowes and Menards. As a small niche supplier of wood products that are needed by the US domestic building market, such as long clear Radiata pine boards, mouldings and primed product, there is a strong argument for keeping New Zealand timber and lumber imports tariff free. With comments from exporters such as customers in the US are already pressurising us to reduce product price, it will be a tough ask to pass any additional tariff costs on should they prevail. “While the section 232 Investigation continues WPMA will do what we can to advocate to keep New Zealand imported timber, lumber and their derivatives into the United Sates tariff free,” Mr Ross said. “But, at the end of the day the US President will be the final tariff rate decision maker, and we know from experience we need to be ready to expect the unexpected.”

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The OneFortyOne photo competition is back, launched in celebration of National Forestry Day. Corporate Affairs Manager Charlene Riley said the competition is designed to inspire young people to get out, explore, and appreciate the forest. Source: Timberbiz “Plantation pine forests are such a familiar part of our landscape,” Ms Riley said. “We often highlight the timber industry for its practical benefits, storing carbon, building homes, fencing farms, and supplying fibre for packaging and potting mix – it can be easy to forget the beauty of the forest itself. “This competition is a chance to slow down and see it through fresh eyes.” To enter the competition, students are asked to share a short reflection on what the forest means to them, along with their photos. “The written reflections we receive each year are very thoughtful. “From imaginative stories about spotting monkeys in the trees, allegedly, to reflections connecting a pine tree to the meaning of life, they’re always interesting.” This year, selected entries will be featured in a calendar, replacing the previous exhibition format. “The calendar will be a way to celebrate the forest and student creativity all year round,” Ms Riley said. Winners will be selected in both primary and secondary school categories and awarded their choice of a new iPad Air, DJI drone, or GoPro. To enter, students should submit a photo and completed entry form to weloveforests@onefortyone.com by Friday, 17 October. For entry forms, terms and conditions, and more information, visit the Community section of the OneFortyOne at www.onefortyone.com/community/photo-competition  

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Increased investment in a West Coast business will mean more specialty native timbers like Tasmanian Oak and Sassafras will be brought to the surface of a potential billion-dollar submerged timber global market. Source: The Mercury Tasmanian company Hydrowood, based at Lake Pieman, uses world-leading techniques to recover specialty native timbers submerged decades ago during hydro-electric dam construction. These include sought-after species like Tas oak, celery top pine, blackwood, myrtle, sassafras and Huon pine. Hydrowood works with locally owned and operated sawmills and processors to bring this wood to the water’s surface and turn it into material for furniture, construction and unique projects. The company announced that it had secured “significant investment” from two new backers, including environmentally focused AMB Holdings. This would allow the company to expand operations and is currently in negotiations to access more than 300,000m³ of additional submerged timber in further hydro lakes across Tasmania. The submerged timber market has a value $50b globally. Kelly Gang Timbers general manager Jye Kelly said Hydrowood was helping to support regional sawmill jobs, including his family-owned business that employs 14 locals. “Working with Hydrowood supports regional sawmill jobs” he said. “We’re proud to be part of Hydrowood’s innovative reclaimed timber story.” New Hydrowood CEO Neale Tomlin said the economic and social “ripple effects” are far reaching and that the fresh round of capital investment means more jobs, more timber and more opportunities for Tasmanian makers, builders and processors. “Hydrowood’s supply chain touches every part of the island,” said Mr Tomlin. “From Mole Creek to Zeehan, Deloraine to Tullah, our operation supports contractors, truck drivers, kiln operators, mill workers, maintenance teams and more. “For every direct job we create, we estimate three more indirect jobs are supported through this ecosystem. “This funding allows us to expand harvesting, invest in drying and distribution infrastructure, and meet growing demand from right across Australia. “Importantly, we’ll continue to do this the Tasmanian way — with local sawmills, local contractors, and timber that tells a uniquely Tasmanian story.” This new investment follows Hydrowood’s landmark $2.1 million equity crowdfunding campaign via OnMarket in 2023, which attracted more than 600 investors – the largest at that time in Tasmania’s history.

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